Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) 16,500 $ 30 $ 52,000 $ 490,000 20% The company uses the absorption costing approach to cost-plus pricing Required: 1. Compute the markup required to achieve the desired ROI. ((Round your final answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Markup percentage 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. ) Unit product cost Markup Selling price per unit Shimada Products Corporation of Japan is anxious to enter the electronic calculator market. Management believes that in order to be competitive in world markets, the price of the electronic calculator that the company is developing cannot exceed $74. Shimada's required rate of return is 26% on all investments. An investment of $3,000,000 would be required to purchase the equipment needed to produce the 57,000 calculators that management believes can be sold each year at the $74 price. Required: Compute the target cost of one calculator. Sales Less desired profit Target cost for Target cost per unit units